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Intramural and external R&D: Evidence for complementary or substitutability

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  • Dolores Añón Higón

    (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).)

  • Juan A. Mañez

    (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).)

  • Juan A. Sanchis

    (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).)

Abstract

The aim of this study is to ascertain the impact of two firm innovation strategies – namely, intramural R&D and external R&D, including either contracted R&D and import of technology, upon total factor productivity (TFP). In order to evaluate these effects we consider robust estimates of TFP through a GMM approach where we account for the diverse innovation strategies carried out by firms (intramural only, external only or both). Using data for Spanish manufacturing firms drawn from the Encuesta de Estrategias Empresariales (ESEE), over the period 1991-2014, our results suggest that inhouse R&D and external R&D are complementary strategies only for large fims in high tech sectors. For the rest of firms, both strategies turn out to be substitutive.

Suggested Citation

  • Dolores Añón Higón & Juan A. Mañez & Juan A. Sanchis, 2017. "Intramural and external R&D: Evidence for complementary or substitutability," Working Papers 1706, Department of Applied Economics II, Universidad de Valencia.
  • Handle: RePEc:eec:wpaper:1706
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    Cited by:

    1. Andrés Mauricio Gómez-Sánchez & Juan A. Máñez & Juan A. Sanchis, 2021. "Are importing and exporting complements or substitues in an emerging economy? The case of Colombia," Working Papers 2106, Department of Applied Economics II, Universidad de Valencia.
    2. Maria Garcia-Vega & Oscar Vicente-Chirivella, 2019. "R&D and firm resilience during bad times," Discussion Papers 2019-13, University of Nottingham, GEP.
    3. César Rodríguez-Gutiérrez & Juan Francisco Canal-Domínguez, 2020. "Knowledge capital and productivity in Spanish industry," Revista de Economía Laboral - Spanish Journal of Labour Economics, Asociación Española de Economía Laboral - AEET, vol. 17, pages 46-64.
    4. García-Vega, María & Vicente-Chirivella, Óscar, 2020. "Do university technology transfers increase firms’ innovation?," European Economic Review, Elsevier, vol. 123(C).
    5. María García-Vega & Elena Huergo, 2019. "Asymmetric additionalities between R&D outsourcing locations," Discussion Papers 2019-08, University of Nottingham, GEP.

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    Keywords

    intramural R&D; external R&D; complementarity; substitutability; TFP;
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